Catenaa, Monday, April 14, 2025-France and Italy have jointly called on the European Commission to revise its approach to blockchain regulation, submitting a proposal Wednesday to revamp the EU distributed ledger technology (DLT) framework.
The move comes amid criticism of the EU’s 2023 Pilot Regime, which has drawn limited participation and failed to meet its intended goals.
French market regulator AMF and its Italian counterpart CONSOB are urging a more flexible and competitive regulatory model to foster experimentation and innovation in digital finance.
The regulators said current DLT regulations are too rigid, deterring firms from testing blockchain in trading, settlement, and custody services.
Marie-Anne Barbat-Layani, chair of the AMF, emphasized the need for Europe to “put in place a competitive framework” to unlock the full potential of DLT in line with EU financial goals.
Among the proposed changes: increasing capital limits to allow larger-scale blockchain trials, expanding the types of eligible financial products, and extending the program’s duration to offer long-term regulatory clarity. The regulators also want to enhance the role of the European Securities and Markets Authority to ensure consistent adoption across member states.
The proposal highlights interoperability between DLT systems and traditional financial infrastructure as a top priority. Common EU-wide standards, they argue, would help streamline integration and encourage institutional participation.
The European Commission is now reviewing the recommendations, which could reshape how blockchain is regulated and deployed across the continent.
